The Canada Child Benefit (CCB) is a tax-free monthly payment provided by the Canada Revenue Agency (CRA) to eligible families, including pharmacists, to help cover the costs of raising children under 18 years of age.
Introduced in 2016 to replace the previous child benefit system, the CCB has supported millions of families across the country. Its goal is to reduce poverty, enhance children’s well-being, and assist families, including pharmacists, in meeting the financial demands of raising children. Learn more about how the benefit amount is determined, who is eligible, and how to apply.
How the CCB is Determined
The amount families receive once a month is based on their net income, how many children they have, and their children’s ages. It is calculated based on the family’s income tax return from the previous year, so it’s important to file on time to ensure eligibility for the CCB.
Payments are recalculated every July and adjusted accordingly (the period runs from July 1 to June 30 each year), therefore, the benefit increases for families with lower incomes and decreases as the family’s income rises. Payments are indexed to inflation.
How Much Can You Receive?
The maximum amount for children under six years of age is $619.75 per month ($7,437 per year). The maximum amount for children aged six to 17 is $522.91 per month ($6,275.64 per year).
These amounts are not taxable, they are paid tax free to you.
There was also a young child supplement (CCBYCS) for children under the age of six that provided four tax-free payments to families in 2021 to help pay for a wide range of expenses. Families were entitled to receive up to $1,200 per child under the age of six in January, April, July or October 2021. Families must have filed and assessed their 2019 and 2020 tax and benefit returns before December 31, 2023.
This program has now ended and no payments are being issued after this date. These payments were issued separately from the CCB payments.
For Children With Disabilities
The Child Disability Benefit (CDB) works in the same way as the CCB, only it’s for families who care for children under 18 with a severe or prolonged impairment in physical or mental functions.
Families will receive tax-free monthly payments based on their net family income, however, applying isn’t necessary if the child is already receiving the CCB and the disability tax credit (DTC). Just like with CCB, the CDB is adjusted every July if necessary.
Applying For the CCB
When babies are born, parents will be given a form to complete at the hospital to register the birth. From there, they’ll be automatically enrolled in the CCB and payment should be received within eight weeks.
If this wasn’t completed in the hospital, applications can be made using CRA My Account, in which case, it will also take eight weeks to receive payment. Applications can also be made by mail, but it will take around 11 weeks to receive payment. To apply, parents must meet the following criteria:
- Live with a child who is under 18
- Primarily responsible for the care and upbringing of the child
- supervising the child’s daily activities and needs
- making sure the child’s medical needs are met
- arranging for child care when necessary
- Resident of Canada (for tax purposes)
If custody is shared, eligibility can vary depending on the circumstances. It’s best to determine eligibility on the Government of Canada website.
How to Ensure You Always Receive Your Payments
Payments will stop if tax returns are not filed on time. They must be filed on time every year for both you and your partner. You should also immediately let the CRA know if you have:
- Changed addresses
- Changed marital status
- Changed bank accounts
- You are the new primary caregiver
- Changed custody arrangements
Receive Assistance From the CRA
When you’re in the hospital following the birth of your child, you will receive forms to register the birth and automatically be enrolled in the CCB. Otherwise, you can apply online through the CRA.
This tax-free monthly payment will be determined based on factors such as your family’s net income, the number of children, and their ages to alleviate child poverty, provide financial support, and help cover the costs of childcare, education, and other necessities.
The payment will either be mailed to you or deposited directly into your account if you’ve set up auto-deposit through your CRA account. These payments do not need to be claimed on your tax returns. To keep receiving payments until your child turns 18, you will need to file your tax return on time every year, or let the CRA know if your personal information has changed.
For pharmacists and pharmacy owners, navigating the complexities of the Canada Child Benefit (CCB) can be challenging as a business owner. Trust the experts at Pharma Tax to guide you through eligibility, application, and benefit determination. Let us help you maximize your CCB benefits and ensure you’re receiving the support your family deserves. Contact Pharma Tax today for personalized assistance.
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